center on urban and metropolitan policy bruce katz, director · pennsylvania remains the 6th...
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THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Back to Prosperity: A Competitive Agenda for Renewing Pennsylvania
Center on Urban and Metropolitan Policy Bruce Katz, Director
The Brookings Institution
Philadelphia Forum December 8th, 2003
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Purpose
→Summarize the latest demographic and market trends affecting the Commonwealth
6 regions 8 metropolitan areas
→Provide new analysis of trends affecting “older” and newer “outer” communities in the state
→Present a state policy agenda that links the state’s competitiveness to the revitalization of older places
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Process
→ Held listening sessions in the 8 metro areas
→ Gathered new data from Census and other federal and state data sources, updating to 2002 where possible
→ Synthesized existing research
→ Generated new analysis, with key research partners, on local government structures and the location of state spending
→ Worked closely with dozens of experts and practitioners throughout the state at every stage
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Overview
We conclude:
•Pennsylvania ranks low on demographic and economic performance and high on sprawl and abandonment
•These twin patterns undermine the state’s competitiveness and are fiscally wasteful
•These patterns are not inevitable; state policies facilitate sprawl and promote abandonment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Overview
We also conclude Pennsylvania can build a competitive future: •The state has enviable assets – strong “eds and meds” sector, large numbers of “imported” students, historic communities, affordable living, and natural resources
•Yet Pennsylvania must revive its cities, boroughs, and older townships to leverage these assets
•State policies must change to revitalize older communities and set a new economic course for the Commonwealth
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
I The state ranks low on demographic and economic trends and high on sprawl and abandonment
II These trends undermine competitiveness and are fiscally wasteful
These trends are not inevitable III
Main Findings
Pennsylvania can build a competitive future IV
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania is barely growing and it’s aging fast
Pennsylvania is spreading out and hollowing out
I The state ranks low on demographic and economic trends and high on sprawl and abandonment
Pennsylvania’s transitioning economy is lagging
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania remains the 6th largest state in the union
Population, 2000
Source: U.S. Census Bureau
Total Population 2000 Rank California 33,871,648 1
Texas 20,851,820 2 New York 18,976,457 3
Florida 15,982,378 4 Illinois 12,419,293 5
Pennsylvania 12,281,054 6 Ohio 11,353,140 7
Michigan 9,938,444 8 New Jersey 8,414,350 9
Georgia 8,186,453 10
Barely Growing
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Percent population change, 1990-2000 Source: U.S. Census Bureau
0.8%
3.4%4.7%
6.9%
8.6%
13.2%
5.5%
0.5%0%
5%
10%
15%
North D
akota
Wes
t Virg
inia
Penns
ylvan
iaOhio
New York
Michiga
nIlli
nois
United S
tates
Barely Growing
However, Pennsylvania was the third-slowest growing state during the 1990s
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
It experienced the 5th-largest domestic outflow between 1995 and 2000
Domestic migration, 1995-2000 Source: U.S. Census Bureau
Domestic MigrationNet Change Rank
New York -874,248 1California -755,536 2Illinois -342,616 3New Jersey -182,829 4Pennsylvania -131,296 5Ohio -116,940 6Michigan -91,930 7Hawaii -76,133 8Louisiana -75,759 9Connecticut -64,610 10
Barely Growing
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
And the Commonwealth’s foreign-born population grew only modestly compared to the nation
Percent change in foreign born, 1990 - 2000
Source: U.S. Census Bureau
Percent Change RankNew Jersey 52.7% 32Alaska 49.8% 33Michigan 47.3% 34Wyoming 46.5% 35Pennsylvania 37.6% 36California 37.2% 37New York 35.6% 38Massachusetts 34.7% 39Louisiana 32.6% 40United States 57.4%
Foreign Born
Barely Growing
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania also suffered the largest absolute loss of young people among states
Change age 25 - 34 cohort, 1990 - 2000
Source: U.S. Census Bureau
Barely Growing
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania’s share of elderly residents meanwhile ranks second only to Florida
Share of population 65+, 2000
Source: U.S. Census Bureau
Population over 65Share Rank
Florida 17.6% 1 Pennsylvania 15.6% 2 West Virginia 15.3% 3 Iowa 14.9% 4 North Dakota 14.7% 5 Rhode Island 14.5% 6 Maine 14.4% 7 South Dakota 14.3% 8 Arkansas 14.0% 9 Connecticut 13.8% 10 United States 12.4%
Aging
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
In sum Pennsylvania has a smaller share of young people and a higher share of the elderly than the nation
Share of population by age, 2000
Source: U.S. Census Bureau
Share of Total PopulationAge Bracket United States Pennsylvania20-29 13.6% 12.0%30-39 15.4% 14.5%40-49 15.1% 15.5%50-59 11.0% 11.5%60-69 7.2% 8.1%70-79 5.8% 7.4%
Aging
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Regionally, Pennsylvania’s growth took place in the eastern and south-central regions; western and central counties lost population
Percent population change, 1990-2000 Source: U.S. Census Bureau Elk
Tioga
Erie
York
Potter
Centre
Berks
Butler
Bradford
PikeLycoming
Bedford
Clinton
MckeanWarren
Clearfield
Blair
Crawford
Indiana
Somerset
Luzerne
Wayne
Fayette
Perry Bucks
Lancaster
Mercer
FranklinChester
Clarion
Schuylkill
Cambria
Monroe
Huntingdon
Greene
Venango
Allegheny
Adams
WashingtonWestmoreland
Jefferson
Mifflin
Fulton
Forest
Dauphin
Armstrong
Beaver
Susquehanna
Sullivan
Juniata
Union Carbon
Lehigh
Columbia
Snyder
Cumberland
WyomingCameron
Lebanon
Montgomery
Lawrence
Lackawanna
NorthumberlandNorthampton
Delaware
Montour
Philadelphia
-10% to 0% 0% to 5% 5% to 10% 10% to 15% > 15%
Regional Boundaries
Barely Growing
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Nevertheless, even York–the fastest growing metro–grew more slowly than the nation as a whole, with Philadelphia growing much slower
Percent population change, 1990-2000 Source: U.S. Census Bureau
13.2%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
York
Lanc
aster
Lehig
h Vall
ey
Harrisb
urg
Philide
lphia
Erie
Pittsbu
rgh
Scranto
n/W-B
/Haz
leton
United States
Barely Growing
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania is barely growing and its aging fast
Pennsylvania is spreading out and hollowing out
I The state ranks low on demographic and economic trends, and high on sprawl and abandonment
Pennsylvania’s transitioning economy is lagging
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
From 1992 to 2002, Pennsylvania ranked 47th among states on employment growth
Percent change in employment, 1992 - 2002
Source: U.S. Census Bureau
Percent Change RankIndiana 13.2% 42Rhode Island 12.8% 43Alabama 12.7% 44Illinois 12.6% 45Ohio 12.3% 46Pennsylvania 11.4% 47Connecticut 9.3% 48New York 9.2% 49Hawaii 2.3% 50UNITED STATES 20.0%
Employment Growth
Lagging Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
All of Pennsylvania's metro areas—including Philadelphia--under-performed the nation in employment growth between 1992 and 2002
Source: U.S. Census Bureau
Change in employment, 1990 - 2000 19.9%
11.4%
0%
5%
10%
15%
20%
25%
Lanc
aster
Harrisb
urg
Lehig
h Vall
ey
Philad
elphia
(w/N
J)York
Pittsbu
rgh Erie
Scranto
n/W-B
/Haz
leton
United StatesPennsylvania
Lagging Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The transition to a service economy is well underway in Pennsylvania
Source: U.S. Census Bureau
Employment share by industry, 1970 - 2000
15% 17%
34%
30%14%
19%
0%
25%
50%
75%
100%
1970 2000
Manufacturing
Services
Retail
Government
FIRE
Wholesale
Transportation/Utilities
Construction
Agriculture/Mining
Transitioning Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Employment by selected industry, 2000
Source: Bureau of Labor Statistics
The transition could be positive for Pennsylvania because of its traction in desirable service sectors …
• Pennsylvania ranks 5th among states in its share of service jobs in education
•Pennsylvania ranks 6th among states in its share of service jobs in healthcare
Transitioning Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
But the transition appears to be overly oriented towards low wage sectors
• Wal-Mart is now the largest private employer in the state
•In 2000, over 61 percent of Pennsylvania’s workers were employed in occupations with average wages of less than $27,000 per year compared to 50 percent nationally
•For example, 1.6 million people are employed in either administrative support or sales
Transitioning Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
As a result, Pennsylvania landed in 40th place among states on growth in average household income
Percent change in average household income, 1989-1999
Source: U.S. Census Bureau
Lagging Economy
Percent Change RankMassachusetts 6.8% 36Oklahoma 6.5% 37Vermont 5.7% 38New Hampshire 5.2% 39Pennsylvania 5.1% 40Delaware 4.7% 41New Jersey 4.6% 42California 3.8% 43Maine 3.2% 44UNITED STATES 7.8%
Average Household Income
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
25+ with a BA diploma or higher, 1990-2000
Source: U.S. Census Bureau
The leap to a high-road economy will be difficult since the state ranks 31st on educational attainment
Lagging Economy
Share RankNew Mexico 23.5% 26Texas 23.2% 27Maine 22.9% 28North Carolina 22.5% 29Wisconsin 22.4% 30Pennsylvania 22.4% 31Florida 22.3% 32North Dakota 22.0% 33Wyoming 21.9% 34Michigan 21.8% 35UNITED STATES 24.4%
BA Attainment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania is barely growing and its aging fast
Pennsylvania is spreading out and hollowing out
I The state ranks low on demographic and economic trends, and high on sprawl and abandonment
Pennsylvania’s transitioning economy is lagging
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania has 2,566 municipalities: cities, boroughs, first-class townships, and second-class townships
OLDER Cities 56 Boroughs 962 1st Class Townships 91 OUTER 2nd Class Townships 1,457 2,566
Decentralization
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Source: U.S. Census Bureau *Includes one “town”
Average Area (Sq. Mi.)
Average Density (People per Sq. Mi.)
Older Pennsylvania 2.6 2,500Cities 8.3 6,621Boroughs* 1.5 1,7331st-Class Townships 10.1 1,621
2nd-Class Townships 28.3 124State Total 17.1 278
Compared to older municipalities, second-class townships are larger in land mass and lower in residential density
Decentralization
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The outer townships have dominated the state’s population growth for decades
Population, 1930 - 2000 Source: Center for rural Pennsylvania
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
1930 1940 1950 1960 1970 1980 1990 2000
Cities
Boroughs
1st Twp
2nd Twp
Decentralization
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
During the 1990s the second-class townships dominated population growth in state
Change in population, 1990 - 2000 Source: U.S. Census Bureau
Decentralization
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Second-class townships captured the lion’s-share of new housing units . . .
Source: U.S. Census Bureau
Decentralization
Share of new housing units by municipality type, 2000 Cities
6%
Boroughs12%
1st Twp10%
2nd Twp72%
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
And almost all of the household growth in the state
Source: U.S. Census Bureau
Decentralization
Share of household growth, 1990-2000
Older Areas8%
2nd Twp 92%
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The “outer” townships now constitute 42 percent of the state’s population, up from 23 percent in 1950
Source: U.S. Census Bureau
Decentralization
Cities25%
Boroughs21%
1st Twp12%
2nd Twp42%
Share of total population, 2000
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Philadelphia followed the same pattern of growth as the state with respect to municipal types
Change in population, Philadelphia Metropolitan Area 1990 - 2000
Source: U.S. Census Bureau
-4.5%
1.3% 1.8%
17.9%
-10%
-5%
0%
5%
10%
15%
20%
Cities Boroughs 1st Twp 2nd Twp
Decentralization
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
However, cities still constitute the largest share of population in the Philadelphia metropolitan area
Source: U.S. Census Bureau
Decentralization
40.7%
11.4%
17.8%30.1%
Cities
Boroughs
1st Twp
2nd Twp
Share of total population, Philadelphia Primary Metropolitan Area, 2000
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Overall, Pennsylvania built 2 new housing units for every 1 new household, the 3rd-highest ratio in the country
Source: U.S. Census Bureau
Decentralization
Ratio of new housing units to net household change, 2000
New Housing Units : Net HH ChangeRank
West Virginia 2.73 1North Dakota 2.32 2Pennsylvania 1.94 3Alabama 1.92 4Mississippi 1.90 5Maine 1.79 6Iowa 1.78 7Missouri 1.78 8Hawaii 1.78 9Ohio 1.77 10
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Urbanized acres per new resident , 1982-1997
Source: USDA Natural Resources Inventory, U.S. Census Bureau
In fact, Pennsylvania has the second-highest ratio of land consumption to population growth among the 50 states
5.64
3.90
2.33 2.11 2.09 2.02 1.77 1.73 1.69 1.53
0.6
0
1
2
3
4
5
6
Wyoming
Penns
ylvan
ia
South
Dakota
Ohio
Kentuc
ky
Louis
iana
Montan
a
Michiga
nMain
e
Alabam
a
United States
Decentralization
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
I
II
III
Main Findings
IV
The state ranks low on demographic and economic trends and high on sprawl and abandonment
These trends undermine competitiveness and are fiscally wasteful
These trends are not inevitable
Pennsylvania can build a competitive future
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Sprawl and urban decline hinder the state’s ability to compete for educated workers
II These trends undermine competitiveness and are fiscally wasteful
Sprawl and urban decline are burdening taxpayers
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Economic success increasingly turns on attracting and retaining highly-educated people
•Ideas, innovation, and creativity now drive the economy •Success requires large numbers of people with a college education and high skills
•For every 2% growth in a metro’s share of college graduates, income grew about 1% during 1990s
Workforce
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania’s metropolitan areas lag the national metro average in educational attainment, with Philadelphia being the exception
Source: U.S. Census Bureau
Metropolitan population 25+ with a BA degree or higher, 2000
27.8%
26.3%
0%
5%
10%
15%
20%
25%
30%
35%
Philad
elphia
Pittsbu
rgh
Harrisb
urg
Lehig
h Vall
eyErie
Lanc
aster York
Scranto
n/W-B
/Haz
leton
100 Largest US Metros
Pennsylvania Metros
Workforce
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
In Pennsylvania cities, the “BA gap” is even more pronounced
Source: U.S. Census Bureau
City population 25+ with a BA degree or higher, 2000
26.3%
17.3%
0%
5%
10%
15%
20%
25%
30%
Pittsbu
rgh
Lehig
h Vall
ey
Philad
elphia Erie
Lanc
aster
Scranto
n/W-B
/Haz
leton
Harrisb
urg York
100 Largest US Cities
Pennsylvania Cities
Workforce
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Across the nation, the cities and metros with highest shares of educated workers have common qualities:
Workforce
•Thick labor markets
•Vibrant and distinctive downtowns
•Plentiful amenities
•A positive, tolerant culture
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Current residence of university graduates, classes 1990-2000 Source: Alumni offices of each university
However, in Pennsylvania, sprawl and decline limit the state’s ability to retain college graduates from its top universities
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Carnegie Mellon University University of Pennsylvania
Pennsylvania Outside of Pennsylvania
Workforce
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Migration by educational attainment, 1999-2001 Source: Gordon F. De Jong, “Pennsylvania’s Brain Drain Migration and Labor Force Education Gap, 2000”
Pennsylvania lost more migrants than it gained in all educational categories as it entered the new millennium
• Between 1999 and 2001 more than 20,000 adults who had college and graduate or professional degrees left
• An additional 21,400 adults with some college training also left
Workforce
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Sprawl and urban decline are burdening taxpayers
II These trends undermine competitiveness and are fiscally wasteful
Sprawl and urban decline hinder the state’s ability to compete for educated workers
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The costs of sprawl are well-researched and well-recognized
Low density development increases demand for: • New schools • New roads • New public facilities • Sewer and water extensions
Low density development increases the costs of key services:
• Police • Fire • Emergency medical
Tax Burden
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
In Pennsylvania, the flip side of sprawl is abandonment; vacancy rates in older municipalities have worsened over the last two decades
Vacancy rates, 1980-2000 Source: U.S. Census Bureau
0%
2%
4%
6%
8%
10%
12%
1980 1990 2000
Cities
Boroughs
1st-ClassTownships2nd-ClassTownships
Tax Burden
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Average home value, 2000
Source: U.S. Census Bureau
As a consequence, home values in older municipalities generally trail those in outer townships
2000 Average Home Value
Older $102,775.72Cities $73,479.03Boroughs $99,410.471st-Class Townships $153,170.52
2nd-Class Townships $145,183.17State Total $120,741.27
Tax Burden
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Percent change in market value property, 1993-2000 Source: Ameregis Inc. tabulation of data from the Governor’s Center for Local Government Services
In fact, deterioration in older areas slowed appreciation and even eroded property values in the 1990s, especially in Pennsylvania’s cities
-11.3%
4.6%7.2%
17.0%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Cities Boroughs 1st Twp 2nd Twp
Tax Burden
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Ultimately, these factors lead to reduced revenues and higher tax rates for older municipalities
Tax Burden
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
I
II
III
Main Findings
IV
The state ranks low on demographic and economic trends and high on sprawl and abandonment
These trends undermine competitiveness and are fiscally wasteful
These trends are not inevitable
Pennsylvania can build a competitive future
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
III These trends are not inevitable
Weak Planning
Haphazard Investments
Barriers to Reinvestment
Governmental Fragmentation
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Major state spending programs have either skewed funding to outer townships or failed to follow a strategic, competitive vision
Haphazard Investments
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Total classifiable transportation investment*, 1999-2002
Source: U.S. Census Bureau, Anne Canby and James Bickford, 10,000 Friends of Pennsylvania *In billions
Between 1999 and 2002, outer townships received $1.2 billion more in classifiable road and bridge spending than older areas
Haphazard Investments
$3.6
$4.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0 Older Pennsylvania Outer Townships
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Share of population versus share of transportation investment, 1999-2002
Source: U.S. Census Bureau, Anne Canby and James Bickford, 10,000 Friends of Pennsylvania
As a consequence, outer townships received 58 percent of classifiable spending during this period, although they represent only 42 percent of the state’s population
58.3%
41.7%
2000 Population
57.5%
42.5%
Capital Transportation Investment, 1999-2002
Older Pennsylvania Outer Townships
Haphazard Investments
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania Department of Transportation per capita investment, 1999-2002 Source: Anne Canby and James Bickford, 10,000 Friends of Pennsylvania
On a per capita basis, outer townships received almost double the amount of total classifiable spending that older municipalities received
$289
$125 $86
$500$487
$136
$336
$959
$0
$200
$400
$600
$800
$1,000
$1,200
Preservation Operations New Capacity Total
Older Pennsylvania Outer Townships
Haphazard Investments
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Elk
Tioga
Erie
York
Potter
Centre
Berks
Butler
Bradford
PikeLycoming
Bedford
Clinton
MckeanWarren
Clearfield
Blair
Crawford
Indiana
Somerset
Luzerne
Wayne
Fayette
Perry Bucks
Lancaster
Mercer
FranklinChester
Clarion
Schuylkill
Cambria
Monroe
Huntingdon
Greene
Venango
Allegheny
Adams
WashingtonWestmoreland
Jefferson
Mifflin
Fulton
Forest
Dauphin
Armstrong
Beaver
Susquehanna
Sullivan
Juniata
Union Carbon
Lehigh
Columbia
Snyder
Cumberland
WyomingCameron
Lebanon
Montgomery
Lawrence
Lackawanna
NorthumberlandNorthampton
Delaware
Montour
Philadelphia
PIDA, OFP, and IDP investments, 1998-2003
At the same time, Pennsylvania is spreading its economic development money “all across the map”
Haphazard Investments
Municipal Type
City Borough 1st-class township 2nd-class township
DCED Programs PIDA Recipients OGP Recipients IDP Recipients
Source: Keystone Research Center
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
PIDA, OFP, and IDP investments per capita, 1998-2003
On a per capita basis, DCED provided as much support through three main programs to projects in outer townships as to those in older areas between 1998 and 2003
Haphazard Investments
Per Capita Spending
Older Pennsylvania $68.81Cities $88.51Boroughs $68.521st-Class Townships $28.32
2nd-Class Townships $71.11State Total $70.33
Source: Business Economic Research Group (BERG) analysis of DCED data
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
PIDA investments, 1998-2003
At one extreme the PIDA industrial park program distributed 65 percent of its total subsidy spending to projects in outlying townships
Haphazard Investments
Source: Business Economic Research Group (BERG) analysis of DCED data
Cities14%
Boroughs24%
2nd Twp62%
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
III These trends are not inevitable
Weak Planning
Haphazard Investments
Barriers to Reinvestment
Governmental Fragmentation
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Planning
The Commonwealth lacks effective state-level planning, strategizing, and coordination capacity
• Disparate state agencies do not plan in accordance with a coherent, unified vision
• Disparate state agencies plan separately and often act at cross-purposes
• As a consequence, there is a lost opportunity to use policies to generate markets and create wealth
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Planning
A lack of consistency requirements ensures land use planning remains essentially optional and frequently uncoordinated
• Municipalities Planning Code does not
yet require zoning ordinances to conform to local or regional plans
• Required county plans remain
advisory
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Sewer expansion, Philadelphia Metropolitan Area, 1992-2002
Source: Delaware Valley Regional Planning Commission
Existing in 1992
Expansions, 1992-2002
Planning
Development is not linked to infrastructure planning in Philadelphia, where a 3.2 percent population growth was accompanied by a 22 percent increase in sewer capacity
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
III These trends are not inevitable
Weak Planning
Haphazard Investments
Barriers to Reinvestment
Governmental Fragmentation
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
• Barriers to brownfield development hinder their productive reuse
• Information gaps, limited marketability, and ineffective acquisition processes keep many vacant and abandoned industrial properties idle
• Barriers to the rehabilitation of older buildings perpetuate their deterioration
Barriers to reinvestment
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
III These trends are not inevitable
Weak Planning
Haphazard Investments
Barriers to Reinvestment
Governmental Fragmentation
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pittsburgh
Scranton
Erie
York
Johnston
Harrisburg
Philadelphia
Allentown
Reading
Williamsport
Lancaster
Sharon
State College
Altoona
Newburg
Metropolitan statistical areas, 2003
Over time economic activity has clustered into one of 14 metropolitan economies
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Municipal Boundaries, 2003
However, Pennsylvania’s 2,566 municipalities drastically complicate the state’s current landscape
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Total local governments, 2003
Pennsylvania has the third-largest number of general government in the country
General Governments in 2002 Rank
Illinois 2,824 1Minnesota 2,734 2Pennsylvania 2,633 3Ohio 2,338 4Kansas 2,030 5Wisconsin 1,922 6Michigan 1,858 7North Dakota 1,745 8Indiana 1,666 9New York 1,602 10
Source: U.S. Census Bureau, 2002 Census of Governments
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
General governments per 100,000 residents, 2002
The Commonwealth’s metropolitan areas remain some of the most fragmented in the nation. Only Philadelphia displays about average numbers of governments
Source: U.S. Census Bureau, 2002 Census of Governments
Governance
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10
15
20
25
30
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Lanc
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Lehig
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Pittsburg
hYork
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Scranto
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/Hazle
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United States
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania’s profusion of local governments hobbles the state’s competitiveness in several ways
Governance
• CMU’s Jerry Paytas concludes that between 1972 and 1997 fragmented regions saw their share of the total income generated in 285 metro areas slip
• Paul Lewis concludes fragmentation results in decreased shares of office space in central business districts, less “centrality,” longer commute times, more “edge cities,” and more sprawl
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
I
II
III
Main Findings
IV
The state ranks low on demographic and economic trends and high on sprawl and abandonment
These trends undermine competitiveness and are fiscally wasteful
These trends are not inevitable
Pennsylvania can build a competitive future
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania can build a competitive future IV
Set a Competitive
Vision
Invest in High-Road Economy
Focus State Investments
Spatially
Renew Governance
Remove Barriers to
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Set a Competitive Vision
Pennsylvania can build a competitive future IV
Set a Competitive
Vision
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Challenge:
The state lacks a coherent strategy for growth and development
Competitive Vision
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Goal:
Pennsylvania should develop a clear, unified vision for economic success and quality development
Competitive Vision
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Policy:
• Establish “Pennsylvania’s Vision for a Competitive Future”
•Make state agencies plans and actions conform to competitive vision
•Foster more and better regional and local planning
Competitive Vision
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Example: Massachusetts’ Commonwealth Coordinating Council
• Governor Mitt Romney has instituted a council that seeks to unite disparate state functions under a new mission of supporting revitalization, discouraging wasteful land use, and encouraging regional solutions
• Initiatives include: linking housing investments to transit stations, reusing urban land in economic development activity, and acquiring open space as a part of larger smart growth plans
Competitive Vision
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Invest in a High-Road Economy
Pennsylvania can build a competitive future IV
Set a Competitive
Vision
Invest in High-Road Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Challenge:
Pennsylvania has not responded adequately to structural shifts in the economy
High-Road Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Goal:
Pennsylvania should invest in workers and sectors that will help the state produce a more competitive, higher wage future
High-Road Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Policy:
•Set a state goal for higher education and align policies to achieve goal
•Reform workforce system
•Leverage sectors (e.g. “Eds and Meds”) that build a high-road economy
High-Road Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Example: Michigan’s New Economic Development Agenda
• In 2003, Gov. Jennifer Granholm signed an executive order centralizing and streamlining job, workforce, and economic development functions into a single Department of Labor and Economic Growth
• Initiatives include convening mayors to discuss how to make Michigan more attractive for new jobs and residents, and engaging universities on what would encourage students to remain after graduation
High-Road Economy
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Focus State Investments Spatially
Pennsylvania can build a competitive future IV
Choose a High-Road Economy
Invest in High-Road Economy
Focus State Investments
Spatially
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Challenge:
State spending programs are not strategically focused
Focused Investment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Goal:
Pennsylvania should make reinvestment in older, established communities a priority
Focused Investment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Policy:
•Have competitive vision drive investment decisions
•Invest in assets that drive innovation (e.g. downtowns, main streets, historic preservation)
•Disclose the location and impact of key investments
Focused Investment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Example: Maryland’s Priority Funding Areas
• In 1997, Maryland enacted several “smart growth” laws designed to steer funds into “priority funding areas” in established places where infrastructure already existed
• Withdraws state support from inconsistent or or disruptive projects and channels aid to places that most need and can best support new development
• Similar initiatives have been adopted in California and New Jersey
Focused Investment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Promote large-scale reinvestment in older areas
Pennsylvania can build a competitive future IV
Set a Competitive
Vision
Invest in High-Road Economy
Focus State Investments
Spatially
Remove Barriers to
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Challenge:
State rules and policies present numerous barriers to the revitalization of the commonwealth’s cities, boroughs, and older suburbs
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Goal:
Pennsylvania should reform policies and programs to encourage land reclamation and redevelopment in cities, towns, and older suburbs
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Policy: •Create a state inventory of vacant and abandoned properties
•Improve the state’s brownfield program
• Create a legal climate that enables redevelopment to be timely, efficient, and profitable
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Example: Urban Redevelopment in the United Kingdom
• Launched in 1998, the United Kingdom’s Previously-Developed Land (PDL) project is working to inventory all vacant and derelict land in England and Wales
• In addition, the national government has set a target that 60 percent of all the country’s new housing should be built on previously-used sites by 2008
• In 2001, 61 percent of housing built was constructed on brownfields or through the conversion of existing buildings
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Renew state and regional governance
Pennsylvania can build a competitive future IV
Set a Competitive
Vision
Invest in High-Road Economy
Focus State Investments
Spatially
Renew Governance
Remove Barriers to
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Challenge:
Pennsylvania’s extreme government fragmentation has exacerbated unbalanced growth patterns and undercut economic competitiveness
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Goal:
Pennsylvania should promote more regional collaboration and cohesion
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
The Policy:
• Convene a Pennsylvania local government commission
• Use regional actors to implement state programs
• Consider reapportioning some local, county, and regional functions
• Adopt reforms to ease voluntary restructuring
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Example: Texas’ Distribution of CDBG Money
• With nearly 3,000 local governments, Austin turned to its 24 regional councils of government (COGs) to rationalize fund allocation and promote multi-municipal cooperation
• COGs prioritize projects based in large part on the regional value of each project
• This ensures that a regional perspective governs how funds are spent, avoiding a more disconnected, overly localized distribution system
Governance
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
Pennsylvania can build a competitive future IV
Set a Competitive
Vision
Invest in High-Road Economy
Focus State Investments
Spatially
Renew Governance
Remove Barriers to
Reinvestment
THE BROOKINGS INSTITUTION CENTER ON URBAN AND METROPOLITAN POLICY
www.brookings.edu/urban
www.brookings.edu/pennsylvania